Tech stocks under pressure; HCL Tech worst hit

ET Bureau|

May 07, 2009, 12.08 PM IST

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MUMBAI: Even as the rest of the market remained buoyant, the technology pack continued to post losses.

The weakness among technology counters began after the United States said it planned to scrap incentives that encourage American firms to ship jobs overseas. Indianoutsourcers have, however, said it would not hurt them.

President Obama said Monday that the current US tax system gave US-based multinationals that shipped jobs to places like India an unfair advantage over other domestic rivals and wanted corrective steps.

Obama plans to tighten rules allowing companies to defer paying taxes on profits made overseas as long as those earnings are ploughed back into the foreign subsidiaries, he said on Monday.

According to NASSCOM, US accounts for about 60 per cent of India���s software services export revenue.

At 11:45 am, the BSE IT Index lost 1.07 per cent with HCL Technologies, down 4.93 per cent, leading declines. Infosys Technologies was down 1.22 per cent and Tata Consultancy Services shed 0.96 per cent.